This Act amends The Liquor and Gaming Control Act and The Manitoba Liquor and Lotteries Corporation Act to authorize and regulate the retail sale of cannabis in Manitoba when such sales are permitted by the federal government.

Cannabis sales

Cannabis may be sold only by a person who holds a retail cannabis licence. This licence authorizes the sale of cannabis at a location specified in the licence as well as through online sales. Cannabis stores may sell only cannabis that has been grown by federally authorized producers. Cannabis sold in a cannabis store must be packaged and labelled in accordance with federal requirements.

The Manitoba Liquor and Lotteries Corporation (MLLC) is responsible for acquiring cannabis for resale. All cannabis at cannabis stores must have been purchased from MLLC. MLLC may enter into agreements with private parties who will act as cannabis distributors.

Liquor, Gaming and Cannabis Authority

The Liquor and Gaming Authority of Manitoba is renamed the Liquor, Gaming and Cannabis Authority of Manitoba. It is responsible for licensing cannabis stores and cannabis distributors. Its inspectors will inspect cannabis stores and enforce restrictions and prohibitions regarding cannabis.

Prohibitions

A number of prohibitions related to cannabis are created to protect the public and prevent young persons from using cannabis. Residential cultivation of cannabis is prohibited. A person under 19 years of age cannot buy cannabis at a cannabis store and they are prohibited from possessing or using cannabis. The provision of cannabis to persons who are impaired by alcohol, cannabis or other substances is prohibited.

The penalties for offences under The Liquor, Gaming and Cannabis Control Act are increased.

Plebiscite on cannabis stores

A municipality may hold a plebiscite to prohibit the operation of cannabis stores in the municipality.

Related and consequential amendments are made to a number of Acts.

(Assented to June 4, 2018)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

101.2(1) This Act does not apply to the consumption, possession, distribution, purchase, sale or cultivation of cannabis for medical purposes that occurs in accordance with the requirements of the applicable federal law.

No application to authorized activities under federal Act

101.2(2) This Act does not apply to an activity respecting cannabis that is conducted under the authority of a licence, permit, authorization, order or exemption under the Cannabis Act (Canada).

Cannabis for research purposes permitted

101.2(3) This Act does not prohibit the consumption, possession or cultivation of cannabis for research or educational purposes in prescribed circumstances.

DIVISION 2

RETAIL SALE OF CANNABIS

Cannabis store agreement

101.3(1) The Minister of Growth, Enterprise and Trade may enter into an agreement with a person to establish and operate a cannabis store.

Cannabis store agreement with MLLC

101.3(2) If authorized by the Lieutenant Governor in Council, MLLC may enter into an agreement with a person to establish and operate a cannabis store.

Retail cannabis licence

101.4(1) The executive director may issue a retail cannabis licence to a person who has entered into an agreement under section 101.3.

Authorized sales

101.4(2) A retail cannabis licence authorizes the holder to sell cannabis on a retail basis

(a) to customers at the premises specified in the licence; and

(b) for delivery from the premises specified in the licence, based on remote orders received by the holder.

Categories of retail cannabis licence

101.4(3) The executive director may issue the following categories of retail cannabis licence:

1.

Controlled-access licence

A licence that authorizes the holder to operate a cannabis store in which cannabis and cannabis packages and labels are stored behind a counter or behind shelving with covers that prevent persons from viewing them. Customers in the store are not allowed to view or access cannabis and any cannabis packages until after purchase.

2.

Age-restricted licence

A licence that authorizes the holder to operate a cannabis store that young persons are prohibited from entering and in which measures specified by the executive director must be implemented to prevent persons outside the store from viewing the interior of the store.

Separate licences required

101.5(1) A separate retail cannabis licence is required for each location where a person operates a cannabis store.

Temporary location

101.5(2) The executive director may issue a written authorization to the holder of a retail cannabis licence that enables the holder to operate a cannabis store at an additional or different location set out in the authorization for a specified period.

Cannabis must be purchased from MLLC

101.6(1) All cannabis sold at a cannabis store must have been purchased from MLLC by the holder of the retail cannabis licence.

Sale of authorized classes of cannabis

101.6(2) Subject to the regulations, the holder of a retail cannabis licence may sell only the classes of cannabis that are authorized for sale under the Cannabis Act (Canada).

Packaging and labelling

101.6(3) The holder of a retail cannabis licence must ensure that all cannabis sold at the cannabis store is packaged and labelled in accordance with the Cannabis Act (Canada).

Cannabis not visible to young persons

101.7 The holder of a retail cannabis licence must ensure that cannabis and cannabis packages and labels in the cannabis store are not visible to a young person.

No young persons in age-restricted cannabis store

101.8(1) A young person must not enter or remain in an age-restricted cannabis store.

Prohibiting entry by young persons

101.8(2) The holder of an age-restricted retail cannabis licence must not allow a young person to be present in the age-restricted cannabis store.

(a) seeks to enter or is present in an age-restricted cannabis store; or

(b) attempts to purchase cannabis at a cannabis store;

the holder of the retail cannabis licence must require the person to produce prescribed identification that provides proof of the person's age.

No consumption in cannabis store

101.9 A person must not consume cannabis in any manner in a cannabis store.

Requirements re operation of cannabis store

101.10 The holder of a retail cannabis licence must ensure that the operation of the cannabis store does not contravene a federal or provincial enactment or a municipal by-law.

DIVISION 3

CANNABIS DISTRIBUTORS

Cannabis distributor licence

101.11(1) The executive director may issue a cannabis distributor licence to a person who has entered into an agreement under section 47.3 of The Manitoba Liquor and Lotteries Corporation Act.

Authorized activities

101.11(2) A cannabis distributor licence authorizes the holder, when directed by MLLC,

(a) to acquire cannabis and sell it to MLLC;

(b) to store cannabis in Manitoba; and

(c) to deliver cannabis to cannabis stores.

Purchase requirement

101.12 All cannabis acquired by a cannabis distributor must have been produced by a person who is authorized under the Cannabis Act (Canada) to produce cannabis for commercial purposes.

DIVISION 4

PROHIBITIONS RE CANNABIS

No unauthorized sale of cannabis

101.13(1) Except as authorized under this Act, a person must not sell cannabis.

No sale or provision of cannabis for resale

101.13(2) A person must not give, sell or otherwise supply cannabis to another person who is not authorized to sell cannabis if he or she knows that the other person intends to sell the cannabis in contravention of this Act.

Unlawful purchase of cannabis

101.14 A person must not purchase or attempt to purchase cannabis from a person who is not authorized under this Act to sell cannabis.

101.19(1) A person must not attempt to purchase cannabis or enter an age-restricted cannabis store by presenting identification that

(a) has been altered or defaced to misrepresent the age or identity of the person;

(b) was not legally issued to him or her; or

(c) is otherwise forged or fraudulently made.

No providing identification to young persons

101.19(2) A person must not provide his or her identification to a young person with the intent of enabling the young person to purchase cannabis or enter an age-restricted cannabis store.

DIVISION 5

SOCIAL RESPONSIBILITY

Public service notices

101.20(1) The executive director may, by written notice, require the holder of a retail cannabis licence to post public service notices prepared, provided or approved by the authority on topics such as responsible cannabis consumption and the dangers of driving after consuming cannabis.

Duty to post notice

101.20(2) As specified by the executive director, the holder of a retail cannabis licence must post the notices in the cannabis store and on any website operated by the holder.

Training

101.21 The holder of a retail cannabis licence must ensure that any person who is involved in the sale of cannabis has successfully completed a training course specified by the executive director.

Investigating and mediating complaints

101.22(1) If the executive director becomes aware of a complaint respecting the operation of a cannabis store, he or she may

(a) investigate the complaint; and

(b) if the person making the complaint and the holder of the retail cannabis licence agree, attempt to mediate the complaint.

Information from municipality

101.22(2) The executive director may require the municipality in which the cannabis store is located to provide any information in its possession respecting the complaint and the municipality must provide all requested information in its possession.

Municipality may participate in mediation

101.22(3) The executive director may request the municipality to take part in a mediation of the complaint.

Reporting to executive director

101.23 Immediately after becoming aware of any information that would indicate that the holder of a retail cannabis licence may be involved in the contravention of this Act, MLLC must report the information to the executive director.

DIVISION 6

MISCELLANEOUS PROVISIONS RE CANNABIS

Importing cannabis

101.24 Nothing in this Act prohibits a person from possessing and consuming cannabis that he or she has lawfully imported or brought into Manitoba.

No accepting gifts

101.25 Except as permitted by regulation, the holder of a retail cannabis licence must not accept a gift of cannabis or a cannabis sample from a cannabis producer, a cannabis distributor or any other person.

Transporting cannabis in boats

101.26(1) A person must not operate or have the care and control of a boat while there is cannabis in the boat, unless the cannabis is stored in a closed compartment in the boat.

Definition: "boat"

101.26(2) In subsection (1), "boat" means any type of craft or vessel that is designed or used to travel on water.

Exemptions

101.27(1) The Lieutenant Governor in Council may make regulations exempting any person, place or thing from any provision of this Part or the regulations or providing that any provision of this Part or the regulations does not apply in respect of a person, place, thing or circumstance. The regulations may specify conditions or restrictions in relation to an exemption or non-application.

Requirement to prove exemption

101.27(2) A person who intends to rely on an exemption under this Part, or on the non-application of any provision of this Part or the regulations must, on the request of an inspector,

(a) provide the inspector with a prescribed document or other thing to confirm the exemption or non-application; or

(b) if no document or other thing is prescribed, demonstrate the applicability of the exemption or non-application to the satisfaction of the inspector.

106(3) A liquor service licence, a retail liquor licence, a retail cannabis licence or a cannabis distributor licence may not be issued unless the executive director is satisfied that the proposed premises will comply with all applicable municipal zoning requirements and that the applicant has obtained or will obtain all required licences, permits and approvals.

14 Section 109 is amended by renumbering it as subsection 109(1) and adding the following as subsections 109(2) and (3):

Validity of cannabis store licence

109(2) Despite subsection (1), a retail cannabis licence is valid only while the holder's agreement under section 101.3 (cannabis store agreement) is in force.

Validity of cannabis distributor licence

109(3) Despite subsection (1), a cannabis distributor licence is valid only while the holder's agreement under section 47.3 of The Manitoba Liquor and Lotteries Corporation Act is in force.

143.1 In the absence of evidence to the contrary, when an inspector seizes a package in circumstances that create a reasonable inference that the contents of the package contain cannabis, the contents are deemed to be cannabis.

145.1 In a proceeding, evidence that an individual left a cannabis store with cannabis in his or her possession is proof, in the absence of evidence to the contrary, that the holder of the retail cannabis licence gave, sold or otherwise supplied the cannabis to the individual.

(dd.8) specifying the circumstances in which the holder of a retail cannabis licence may accept a gift of cannabis or a cannabis sample;

(dd.9) respecting the operations of cannabis distributors;

(dd.10) prescribing standards for storage facilities used by cannabis distributors, including design requirements and security measures;

(dd.11) respecting the transportation and delivery of cannabis by cannabis distributors;

(dd.12) establishing measures to be taken by holders of retail cannabis licences and cannabis distributor licences to prevent cannabis from being diverted into an illegal market;

(dd.13) respecting the records to be kept and maintained by holders of retail cannabis licences and cannabis distributor licences and the submission of records to the authority or other prescribed persons;

165(1.1) A municipality may hold a plebiscite under section 160.1 (plebiscite on cannabis sales) before January 1, 2022, on a date specified by the council of the municipality. On or after that date, a plebiscite may only be held on voting day.

167(4) If a plebiscite to prohibit the local sale of cannabis is approved, no retail cannabis licence authorizing the operation of a cannabis store may be issued in the municipality and any such licences in effect in the municipality are cancelled effective six months after the plebiscite.

172.1(1) The council of a municipality may pass a by-law prohibiting the sale of cannabis at cannabis stores in the municipality on Sunday.

No other restriction in by-law

172.1(2) A by-law under this section must not contain any other restrictions or prohibitions regarding the sale of cannabis at cannabis stores in the municipality.

Notice to authority

172.1(3) A municipality that passes a by-law under this section must give a copy of the by-law to the authority as soon as possible after it passes the by-law and must notify the authority if it repeals the by-law.

31 The section heading to section 173 is replaced with "Compliance with Sunday liquor sale by-law".

"cannabis store" means the premises specified in a retail cannabis licence issued under The Liquor, Gaming and Cannabis Control Act where the retail sale of cannabis is authorized. (« magasin de cannabis »)

28(5) The corporation or a person appointed by the corporation may inspect and audit the financial records and sales records of the holder of a retail cannabis licence issued under The Liquor, Gaming and Cannabis Control Act.

39 Section 29 is amended by striking out "gaming or liquor" wherever it occurs and substituting "gaming, liquor or cannabis".

40 Section 31 is amended bystriking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

47.1(1) Subject to this Part and The Liquor, Gaming and Cannabis Control Act, the corporation has the exclusive authority to acquire cannabis and sell it to operators of cannabis stores for resale.

Purchase requirements

47.1(2) All cannabis acquired by the corporation must be produced by a person who is authorized to produce cannabis for commercial purposes under the Cannabis Act (Canada).

Duty of corporation to supply

47.2 When the operator of a cannabis store asks the corporation to supply a particular class, variety or brand of cannabis, the corporation must make reasonable efforts to do so on a timely basis.

Cannabis distributor agreement

47.3(1) The corporation may enter into an agreement with a person to act as a cannabis distributor.

Cannabis distributor activities

47.3(2) Subject to subsection (3), a person who enters into a cannabis distributor agreement may, in accordance with that agreement,

(a) acquire cannabis and sell it to the corporation;

(b) store cannabis in Manitoba; and

(c) deliver cannabis to cannabis stores.

Licence required

47.3(3) A person who has entered into a cannabis distributor agreement may engage in the activities set out in subsection (2) only if the person holds a valid cannabis distributor licence issued under The Liquor, Gaming and Cannabis Control Act.

(i.1) establishing measures to be taken by the corporation to prevent cannabis from being diverted into an illegal market;

PART 3

RELATED AND CONSEQUENTIAL AMENDMENTS AND COMING INTO FORCE

RELATED AND CONSEQUENTIAL AMENDMENTS

C.C.S.M. c. C107 amended

44 Clauses 3(2)(a) and (c) and 5(2)(d) and (h) of The Civil Remedies Against Organized Crime Act are amended by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

(i) by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act", and

(ii) by adding "or cannabis" after "with respect to liquor".

C.C.S.M. c. L110 amended

46 Clause 17(1)(b) of The Legislative Assembly Act is amended by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

C.C.S.M. c. M110 amended

47 Subsection 119(2) of The Mental Health Act is amended by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

C.C.S.M. c. M226 amended

48 Clause 23(1)(i) of The Municipal Assessment Act is amended in the part after subclause (ii) by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

C.C.S.M. c. M257 amended

49 Subclause 2(b)(i) and clause 51(5)(b) of The Municipal Councils and School Boards Elections Act are amended by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

C.C.S.M. c. N92 amended

50 Subsection 1(1) of The Non-Smokers Health Protection and Vapour Products Act is amended in the definition "licensed premises" by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

C.C.S.M. c. R80 amended

51 Subsection 3.1(3) of The Remembrance Day Act is amended by striking out everything after "does not apply" and substituting "to premises that are the subject of a licence or permit issued under The Liquor, Gaming and Cannabis Control Act.".

(b) by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

C.C.S.M. c. S5 amended

53 Subsection 1(1) of The Safer Communities and Neighbourhoods Act is amended in the definition "specified use"

(a) in clause (a), by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act";

(b) by replacing clause (b) with the following:

(b) for the sale of liquor or cannabis without a licence or permit issued under The Liquor, Gaming and Cannabis Control Act,

(c) by adding the following after clause (d):

(d.1) for the cultivation or production of cannabis in contravention of the Cannabis Act (Canada) or The Liquor, Gaming and Cannabis Control Act,

C.C.S.M. c. S110 amended

54 Section 1 of The Shops Regulation Act is amended by replacing clause (b) of the definition "shop" with the following:

(b) where liquor or cannabis is sold under the authority of a licence or permit issued under The Liquor, Gaming and Cannabis Control Act.

C.C.S.M. c. T2 amended

55 Section 122 of The Tax Administration and Miscellaneous Taxes Act is amended in the definitions "beer" and "liquor" by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".

C.C.S.M. c. Y50 amended

56 Section 1 of The Youth Drug Stabilization (Support for Parents) Act is amended in the definition "alcohol" by striking out "The Liquor and Gaming Control Act" and substituting "The Liquor, Gaming and Cannabis Control Act".